Beijing, China (4E) – The Chinese government’s Purchasing Managers’ Index (PMI) for the country’s nonmanufacturing sector dropped to 54.5 in March from 55.0 in the previous month, according to the China Federation of Logistics and Purchasing report released Thursday.
A reading above 50 indicates expanding activity on the prior month, while below that indicates contraction. The nonmanufacturing PMI comprises services that include retail, software and aviation as well as the construction and real-estate sectors.
The subindex for services slid to 52.8 from 53.8 and the construction subindex climbed to 61.3 from 59.9, according to the federation’s report. The subindex for new orders for the entire nonmanufacturing sector declined to 50.8 from 51.4 in the prior month.
The figures are based on responses to monthly questionnaires sent to purchasing executives in 1,200 firms across 27 nonmanufacturing sectors.
Thursday’s results were released following the announcement earlier in the week by the federation that its official manufacturing PMI climbed to 50.3 in March from 50.2 in the earlier month. The federation publishes the data along with the state-run National Bureau of Statistics (NBS).